MAPFRE México Hosts Second Global Business Forum to Discuss Risk Management Challenges
MAPFRE México successfully organized its second Global Business Forum, establishing itself as a leading platform for addressing significant risk management challenges in an increasingly complex and interconnected world.
Forum Collaborators and Participants
In collaboration with MAPFRE Global Risks, the event took place in Mexico City and Monterrey, bringing together specialists and business leaders from both national and international backgrounds.
Key Themes of the Forum
- Climate Change and Natural Disasters: The forum focused on the intensifying frequency and severity of weather phenomena due to climate change, with a particular emphasis on Mexico’s projected scenarios of extreme temperatures, altered precipitation patterns, and increased coastal and urban impact.
- Reinsurance Market Volatility: The forum discussed the current state of the reinsurance market, highlighting its crucial role in managing large-scale catastrophes and maintaining global economic stability.
- ESG Trends and Regulations: The forum explored the growing importance of Environmental, Social, and Governance (ESG) factors in corporate risk management, as well as their regulatory implications.
Key Speeches and Insights
“Climate Change and CAT Exposure” by Juan Sastrústegui
Juan Sastrústegui, Director of Strategy, Communication, Sustainability, and Innovation at MAPFRE RE, emphasized the three key elements in catastrophe analysis: danger, vulnerability, and value. He highlighted that in 2024, natural disasters caused $368 billion in global economic losses, with only $145 billion backed by insurance, indicating a growing protection gap.
Sastrústegui stressed the need for collaborative efforts among the insurance sector, governments, and society to reduce vulnerabilities, anticipate risks, and close the protection gap, especially in the face of climate change and natural disasters.
“Reinsurance in Times of High Volatility: The New Market Cycle” by Horts Agata
Horts Agata, Vice President of the Reinsurance Committee at AMIS, discussed the reinsurance sector’s essential role in global economic functioning. The sector concentrates around 85% of the world’s premiums in just 20 companies and manages nearly 12% of global financial assets.
Agata highlighted the reinsurance sector’s significance in managing large-scale catastrophes, from hurricanes like Katrina, Rita, or Wilma to pandemics such as COVID-19, acting as a crucial shield that enables countries and insurers to absorb massive losses and maintain economic stability.
“Perception of Risk” by Bosco Francoy
Bosco Francoy, CEO of MAPFRE Global Risks, presented the primary global risks facing companies and governments in the short and medium term. Among these, climate change, information manipulation, economic instability, and geopolitical conflicts stood out.
International studies predict that extreme natural disasters, lack of trust in information, and financial risks will dominate the coming decade. This high-uncertainty scenario directly impacts insurance costs and organizations’ ability to safeguard their operational continuity.
New Global Economic Context
The forum analyzed the new global economic context, marked by tariff returns, financial uncertainty, and shifts in growth among major economies.
Mexico faces both challenges and opportunities in this scenario. While potential tariffs on imports from countries like China, India, or Brazil starting in 2026 could increase input and product costs, Mexico’s T-MEC membership ensures favorable trade conditions with the US and Canada, bolstering its competitiveness.
Despite global uncertainty, Mexico retains strategic advantages such as a strong currency, consistent foreign investment flows, and nearshoring as a means to establish itself as a regional hub.
Closing Remarks
The forum concluded with Álvaro Núñez Andrada, MAPFRE’s Subdirector General of Business and Communication, expressing gratitude to Mexico for being a key country in the company’s strategy over four decades. He reaffirmed MAPFRE’s commitment to continuing to drive initiatives in the sector to combat climate change.
Key Questions and Answers
- What was the main focus of MAPFRE México’s Global Business Forum? The forum focused on risk management challenges in an increasingly complex and interconnected world, addressing climate change, reinsurance market volatility, and ESG trends.
- What role does the reinsurance sector play in global economic stability? The reinsurance sector is crucial for managing large-scale catastrophes and maintaining global economic stability.
- What are the primary global risks facing companies and governments in the short to medium term? Climate change, information manipulation, economic instability, and geopolitical conflicts are among the primary global risks.
- How does Mexico’s strategic position impact its competitiveness in the global market? Despite potential tariff challenges, Mexico’s T-MEC membership and strategic advantages like a strong currency and consistent foreign investment ensure its competitiveness in the global market.
